© Dukascopy Bank SA
"It's probably a one-time rate increase this year and probably in September and we may see gold falling to $1,080 when that happens."
- Wing Fung Financial (based on CNBC)
Pair's Outlook
XAU/USD was moving freely around the weekly pivot point at 1,161 on Monday. Therefore, this level failed to put any restriction on a downside development. Gold decided to test the 1,154 mark, which is acting as a temporary support at the moment. However, the bullion is forecasted to make additional bearish attempts in the near term. A close below this monthly support may result in a further drop down to the Bollinger band at 1,143, which also represents the lower boundary of the bearish channel formed by XAU/USD in June-July.
Traders' Sentiment
Sentiment of the SWFX market with respect to gold remains undoubtedly positive at the moment, as bulls are enjoying a majority of 66% versus just 34% for bears.
© Dukascopy Bank SA